The three largest internet providers in Australia have been ordered to pay a total of $33.5 million in penalties after making false or misleading statements to consumers.
Telstra, Optus, and TPG were all found to have promoted levels of internet speeds to customers that they couldn’t guarantee.
Here’s what you need to know.
Background
The Australian Competition and Consumer Commission (ACCC) began individual proceedings in the Federal Court against Telstra, Optus, and TPG in August last year.
The ACCC said each company offered compensation if customers’ internet lines couldn’t accommodate the speeds they were paying for, but failed to follow through on this offer.
The ACCC said these claims were made for at least 12 months from 2019 to 2020 and impacted nearly 120,000 customers.
The findings
Each company admitted to making false or misleading statements regarding its internet plans, because it didn’t have the functions to carry out what they promised.
Telstra ($15m), Optus ($13.5m), and TPG ($5m) were all given extensive penalties for breaching the Australian Consumer Law.
Compensation claims
Each company has begun contacting impacted customers to refund the money taken from customers who were overcharged.
TPG was ordered to develop a consumer law compliance program, while Optus was asked to update its existing program. Telstra already had a compliance program following a previous court action involving the ACCC.
